Home CryptocurrencyAltcoin Celsius CEO plans to restructure firm to focus on cryptocurrency custody: Report

Celsius CEO plans to restructure firm to focus on cryptocurrency custody: Report

by SuperiorInvest

Cryptocurrency lending platform Celsius, which is currently in the middle of bankruptcy proceedings, is reportedly planning to revamp its cryptocurrency custody services.

According to a New York Times report Tuesday, Celsius CEO Alex Mashinsky and chief innovation officer and chief compliance officer Oren Blonstein focused to revive the company with a project called Kelvin – storing users’ cryptocurrencies and charging fees for certain transactions. Mashinsky reportedly did so at a Sept. 8 employee meeting where the company discussed possible scenarios for its future after filing for Chapter 11 bankruptcy in July.

A legal entity representing Celsius’ creditors, called the Committee of Unsecured Creditors, has reportedly asked the firm to continue offering services including loans, betting and escrow. Maskinsky compared the platform’s possible comeback to that of Apple and Delta Airlines — the companies came close to bankruptcy in 1997 and filed for Chapter 11 in 2005, respectively.

Under Celsius’ current business model he said did not charge any fees for transactions, withdrawals, origination or early termination. The report cited a person with knowledge of the matter as saying the committee had raised concerns about Mashinsky’s involvement with Celsius and the proposed Kelvin project.

“If the core of our business is escrow, and our customers decide to do things like share somewhere or trade one asset for another, or take out a loan against an asset as collateral, we should be able to charge a commission,” Blonstein reportedly told Celsia employees.

Related: Celsia’s bankruptcy proceedings show complexity amid dwindling hope for recovery

Regulators charged Celsius amid bankruptcy court proceedings. On September 7, the Vermont Department of Financial Regulation claimed both the lending platform and Mashinsky misled state regulators about the firm’s financial health and its compliance with securities laws. Users also sought legal remedies access to over $22.5 million in funds that have been in Celsius custody since the withdrawal freeze in June.

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